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An elite private college receives large donations from successful alumni. The account that holds these donations has $955,000,000 currently. a. How much would the account earn in one year of simple interest at a rate of 5.33%? b. How much would the account earn in one year at 5.33% if the interest was compounded daily? Round to the nearest cent. c. How much more interest is earned by compounded daily as compared to simple interest?

An elite private college receives large donations from successful alumni. The account that holds these donations has $955,000,000 currently. a. How much would the account earn in one year of simple interest at a rate of 5.33%? b. How much would the account earn in one year at 5.33% if the interest was compounded daily? Round to the nearest cent. c. How much more interest is earned by compounded daily as compared to simple interest?

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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An elite private college receives large donations from successful alumni. The account that holds these donations has $955,000,000 currently. a. How much would the account earn in one year of simple interest at a rate of 5.33%? b. How much would the account earn in one year at 5.33% if the interest was compounded daily? Round to the nearest cent. c. How much more interest is earned by compounded daily as compared to simple interest? d. If the money is used to pay full scholarships, and the price of tuition is $61,000 per year to attend, how many more students can receive full four-year scholarships if the interest was compounded daily rather than using simple interest?
Transcribed Image Text:An elite private college receives large donations from successful alumni. The account that holds these donations has $955,000,000 currently. a. How much would the account earn in one year of simple interest at a rate of 5.33%? b. How much would the account earn in one year at 5.33% if the interest was compounded daily? Round to the nearest cent. c. How much more interest is earned by compounded daily as compared to simple interest? d. If the money is used to pay full scholarships, and the price of tuition is $61,000 per year to attend, how many more students can receive full four-year scholarships if the interest was compounded daily rather than using simple interest?
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